What is the estimated value of Mar-a-Lago, owned by Donald Trump? This has been a subject of disagreement following a New York judge’s decision. The former president claimed the Florida property is worth a million dollars, while New York’s Attorney General, in a lawsuit against Trump for inflating his assets, argued that Judge Engoron believed it was worth significantly less, around $2.3 million, according to some report. People ridiculed the idea that a small piece of beachfront real estate could ever be sold, given its diminutive size compared to the tiny inland plots in the affluent Palm Town. In the ongoing trial, people are questioning the high price someone would be willing to pay for such a private property ports.

The 126-room, 62,500-square-foot mansion serves as Trump’s main residence. It also functions as a club, exclusive beach resort, historic treasure, and event venue with a lavish ballroom adorned with gold leaf. It’s the location where federal prosecutors claim Trump unlawfully stored government documents he took with him after leaving office in 2021. Although Trump has acknowledged employing ‘truthful hyperbole’ in his business endeavours for a long time.

Wealthy heiress Marjorie Merriweather Post, along with her second husband, financier EF Hutton, originally owned the property, which had around 500 members. Trump purchased it in 1985 for approximately $10 million, equivalent to about $30 million today. He made significant investments in the estate, which he typically used from October to May.

However, by the early 1990s, Trump faced financial difficulties due to the failure of several of his businesses. He informed Palm Beach town officials that he couldn’t afford the $3-million annual maintenance costs and proposed subdividing the property and constructing mansions, but this proposal was rejected by the town. Negotiations continued, and in 1993, an agreement was reached, allowing Trump to transform the estate into a private club, providing him with the necessary cash flow.

It's difficult to provide a definitive answer. The main challenge is the absence of similar properties for comparison. Nowadays, no one constructs grand mansions in Palm Beach like Mar-a-Lago, and those that once existed have either been demolished, subdivided, or transformed into museums.

In an April deposition, Trump defended his belief that Mar-a-Lago could be valued at $1 billion by drawing a comparison to the prices that masterpieces like the Mona Lisa or a painting by Renoir would fetch – suggesting that the ultra-wealthy would be willing to pay a premium for it. Beracha stated that the significantly smaller Pall estate, previously in the possession of the Kennedy political dynasty, was sold for $70 million three years ago.

Regarding the low tax assessment, the county calculates Mar-a-Lago’s current value for tax purposes at $37 million. This assessment is based on its operational income as a club rather than its resale value or the cost of reconstruction. Mar-a-Lago is one of the few private clubs in the county assessed in this manner.

Becky Robinson, a spokesperson for the tax department, explained that determining tax rates for private clubs is challenging due to their uniqueness and how they are either custom-designed or converted, making it difficult to compare them to similar properties.

In her legal case against Trump, Letitia James, the New York Attorney General, contended that among several assets, Mar-a-Lago was among those that Trump overstated in financial documents provided to banks and others. Trump, on these documents, assessed the value of Mar-a-Lago as high as $739 million, a value that, according to James, disregarded deed restrictions requiring the property’s use as a social club rather than a private residence. In these financial statements, Trump’s valuation of the club was based on the false and misleading assumption that it was an unrestricted residential property that could be sold and used as a private home, which clearly was not the case. Trump’s legal team countered by denying any deceptive practices and suggesting that banks might not have heavily relied on his financial information.